Sir, what do you mean by ”threats to objectivity” which has been mentioned that the external auditors have to evaluate the existence and significance of threats to objectivity and the level of competence of the internal auditors who will provide such direct assistance.

Questions › Category: SA-610 › Sir, what do you mean by ”threats to objectivity” which has been mentioned that the external auditors have to evaluate the existence and significance of threats to objectivity and the level of competence of the internal auditors who will provide such direct assistance.

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Kishan Kamble asked 7 years ago

Question Tags: Direct Assistance from internal auditors.

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Ravi Staff answered 7 years ago

if internal auditor is
holding any other position or giving any in company (conflict of interest)
appointed by CFO and not by audit committee
has restrictions on scope & powers
reports only to CFO instead of audit committee
has past history or present indications of favouring or protecting management
etc
then these are threats to objectivity, he will be biased while giving his report